One of the biggest corruption cases to hit the American legal profession moved a step closer to its finale Thursday as lawyer Melvyn Weiss agreed to plead guilty to participating in a kickback scheme that generated millions of dollars in fees from class-action lawsuits against high-profile companies.
The U.S. attorney's office in Los Angeles, which is handling the case, said Weiss agreed to plead guilty to a single racketeering conspiracy charge.
Under the agreement, Weiss, 72, could be sentenced to 18 to 33 months in prison, with the possibility of half of the time as home confinement or community service. Weiss also agreed to forfeit $9.75 million in ill-gotten gains, pay a $250,000 fine and serve three years' probation.
The government said it expected to recommend that U.S. District Judge John F. Walter set the sentence at 33 months when Weiss formally enters his guilty plea in the next few weeks. He will be sentenced at a separate hearing this year.
Judges, however, are not bound by the terms of plea agreements.
Charged with conspiracy, racketeering, obstruction of justice and making false statements, Weiss faced as many as 40 years in prison had he been convicted on all counts in a trial that was to begin in August.
His decision to plead guilty came after his former law partner William S. Lerach of San Diego pleaded guilty to a charge related to the same kickback scheme. Lerach was sentenced last month to two years in prison and two years' probation, fined $250,000 and ordered to complete 1,000 hours of community service.
According to an indictment handed down in 2006, the New York law firm then known as Milberg Weiss made an estimated $250 million in fees over two decades by filing class-action lawsuits on behalf of ready-made plaintiffs who received kickbacks in return for participating in the suits.
The indictment claims the firm paid $11.3 million to plaintiffs in suits against Xerox Corp., United Airlines and dozens of other companies.
"This kickback scheme lasted more than 25 years and had a severely detrimental effect on the administration of justice across the nation as lies were routinely made to judges overseeing significant cases," U.S. Atty. Thomas P. O'Brien said.
In a statement, Weiss expressed remorse. "I deeply regret my conduct and apologize to all those who have been affected," he said. "I believe that it is very important to preserve [class action suits] for the benefit of victims of wrongdoing affecting the masses."
